Class-actions suits filed against large auto companies for labor abuse of high-skilled workers

Large automotive and logistics companies in the U.S. are facing class action lawsuits for allegedly engaging in labor abuse, fraud and exploitation of high-skilled Mexican workers through the TN visa program, which allows for Mexican and Canadian citizens to temporarily work in the U.S. in limited professional occupations.

Mexican TN workers proposed a class action lawsuit against GFA Alabama and Hyundai Glovis. The lawsuit alleges fraud, discrimination, breach of contract, racketeering and wage violations.

The 95-page breach-of-contract case says the companies used false promises of highly paid skilled engineering jobs to recruit the plaintiffs through the TN visa program. Upon their arrival in the U.S., the workers allege they were instead forced to work in warehouses and on automotive assembly lines, facing discrimination and wage violations.

The workers also explain that in addition to paying significant visa fees, travel expenses for consular processing and relocation to the U.S., they also had to pay for overcrowded employer-provided housing and transportation.

Per the case, GFA and Glovis operate warehouses in Georgia at which the plaintiffs and other foreign workers were recruited to work.

The case alleges the scheme has defrauded both the U.S. government and foreign workers and violated the Georgia Racketeer Influenced and Corrupt Organizations Act (RICO) and federal labor laws.

The TN nonimmigrant classification was created under the former North American Free Trade Agreement (replaced by the U.S.-Mexico-Canada Free Trade Agreement) for Mexican and Canadian Free Trade Agreement) for Mexican and Canadian citizens to temporarily work in the U.S. in limited professional occupations.

Under that program, workers must qualify for specific professions such as engineers, lawyers, and veterinarians, and with certain exceptions for Canadian citizens, have a pre-arranged job offer with a U.S. employer.

The Department of Labor (DOL) is the one responsible for regulating and enforcing labor conditions in the H-1B and H-2 visa programs, the TN visa is a type of visa in the former denomination.

For an H-1B visa classification, a U.S. employer must receive a certified labor condition application (LCA) from the DOL, which the employer must submit to the U.S. Citizenship and Immigration Services. Non-compliance can result in fines and other sanctions.

Amid the allegations, the Centro de los Derechos del Migrante, a Mexico-based organization that advocates for migrant rights, proposed a series of measures to address these issues. Among their recommendations, greater transparency in the recruitment and hiring process, prohibiting recruitment and contract breach fees and developing regulations for employer vetting and certification were highlighted.